| 

US tariffs, GST uncertainty hit cotton yarn demand in south India

In Mumbai, cotton yarn prices fell by &#****;*-* per kg in the past couple of days. Besides tight payment flows, US tariffs and the proposed GST restructuring discouraged buying. A Mumbai trader told Fibre2Fashion: “Buyers’ confidence dipped to the lowest level amid current uncertainty. As weaving and knitting activities slowed after the imposition of the ** per cent US tariff, buyers stayed away. GST revisions also discouraged buying as future tax rates will influence yarn prices.” The government may bring all textile products under a uniform tax rate to avoid the inverted duty structure.

In Mumbai, ** carded yarn of warp and weft varieties were traded at &#****;*,***-*,*** (~$**.**-**.**) and &#****;*,***-*,*** per * kg (~$**.**-**.**) (excluding GST), respectively. Other prices include ** combed warp at &#****;***-*** (~$*.**-*.**) per kg, ** carded weft at &#****;*,***-*,*** (~$**.**-**.**) per *.* kg, **/** carded warp at &#****;***-*** (~$*.**-*.**) per kg, **/** carded warp at &#****;***-*** (~$*.**-*.**) per kg and **/** combed warp at &#****;***-*** (~$*.**-*.**) per kg, according to trade sources.